Task force on Post bats for banking, insurance and e-tail services without delay
A task force on how to leverage the post office network has suggested the central government set up a holding company under the department of posts (DoP) for rollout of banking,insurance and e-commerce services.
The panel was headed by T S R Subramanian, former Union cabinet secretary. There are 1.55 million staffers in the country's postal network Stock Market Trading Tips
In its report to the communications ministry, the task force says the proposed holding company should have five divisions ('verticals').
"Three verticals — banking, insurance and e-commerce — can start working immediately. Government services and the business to business vertical can start as we go along," says Subramanian.
His report says e-commerce could be the second largest activity after banking that DoP can foray into, and become one of the biggest entities in the world. It also suggests aPost Bank of India as a separate entity, with a branch in each district in the first three years, with an initial capital of Rs 500 crore to be funded by the government Personal Numerology Trading Tips
The Post Bank of India can complement the Prime Minister’s Jan Dhan Yojana for financial inclusion, says the report. It notes that post offices have a total of Rs 6 lakh crore in deposits, second only to those in the country's largest bank, State Bank of India (SBI).
The panel estimates its proposed restructuring of the postal network can lead to direct job creation in excess of 500,000 in three to five years, apart from indirect jobs.
Communications and information technology minister Ravi Shankar Prasad stated the government would give a "structured response" to the suggestions. Adding: "Not a single person in DoP will lose (his or her) job as we undertake reforms.”
The losses on sale of post cards, inland letters and speed post, which are subsidised, are among the main reasons for the department's poor financial health, says the panel. It suggests India Post continue to offer these services, at a relatively lower cost, as it is a government obligation to provide affordable communication tools Commodity Trading Tips
“Though the committee has pointed towards losses due to subsidy, I would like to assure people that we are not considering to increase the cost of postal services because it is a common man's tool for communication,” added the minister.
DoP's revenue rose 43 per cent between 2007-08 and 2011-12 but expenditure went up 96 per cent, resulting in a four-fold increase in net deficit, the report said. “Today, couriers reach tier-1 and tier-2 cities and at max, in tier-3 cities. There is hardly any service available in tier-4 towns or below. Post offices can play a big role in bridging this gap,” said Subramanian Nifty Trading tips
The panel was headed by T S R Subramanian, former Union cabinet secretary. There are 1.55 million staffers in the country's postal network Stock Market Trading Tips
In its report to the communications ministry, the task force says the proposed holding company should have five divisions ('verticals').
"Three verticals — banking, insurance and e-commerce — can start working immediately. Government services and the business to business vertical can start as we go along," says Subramanian.
His report says e-commerce could be the second largest activity after banking that DoP can foray into, and become one of the biggest entities in the world. It also suggests aPost Bank of India as a separate entity, with a branch in each district in the first three years, with an initial capital of Rs 500 crore to be funded by the government Personal Numerology Trading Tips
The Post Bank of India can complement the Prime Minister’s Jan Dhan Yojana for financial inclusion, says the report. It notes that post offices have a total of Rs 6 lakh crore in deposits, second only to those in the country's largest bank, State Bank of India (SBI).
The panel estimates its proposed restructuring of the postal network can lead to direct job creation in excess of 500,000 in three to five years, apart from indirect jobs.
Communications and information technology minister Ravi Shankar Prasad stated the government would give a "structured response" to the suggestions. Adding: "Not a single person in DoP will lose (his or her) job as we undertake reforms.”
The losses on sale of post cards, inland letters and speed post, which are subsidised, are among the main reasons for the department's poor financial health, says the panel. It suggests India Post continue to offer these services, at a relatively lower cost, as it is a government obligation to provide affordable communication tools Commodity Trading Tips
“Though the committee has pointed towards losses due to subsidy, I would like to assure people that we are not considering to increase the cost of postal services because it is a common man's tool for communication,” added the minister.
DoP's revenue rose 43 per cent between 2007-08 and 2011-12 but expenditure went up 96 per cent, resulting in a four-fold increase in net deficit, the report said. “Today, couriers reach tier-1 and tier-2 cities and at max, in tier-3 cities. There is hardly any service available in tier-4 towns or below. Post offices can play a big role in bridging this gap,” said Subramanian Nifty Trading tips
posted by Naresh Jain @ 21:53
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